Nation lifts tariffs on wines from Australia

China has decided to lift anti-dumping duties and countervailing tariffs imposed on imported Australian wine for more than three years, in keeping with shifting market conditions in the Chinese wine market, the Ministry of Commerce said on Thursday.

The decision, which takes effect on Friday, will scrap duties as high as 218 percent on Australian wine exports to China, the ministry said.

Through joint efforts, China and Australia have reached a consensus on effectively resolving their trade disputes within the framework of the World Trade Organization, said He Yadong, a ministry spokesman, during a news conference.

China and Australia are important trading partners, and China is willing to engage in dialogue and negotiations with Australia to address mutual concerns and promote stable and sound development of bilateral economic and trade relations, He added.

The Australian Department of Foreign Affairs and Trade said in a statement on Thursday it welcomed Beijing's decision, "which comes at a critical time for the Australian wine industry".

"Since 2020, China's duties on Australian wine effectively made it unviable for Australian producers to export bottled wine to that market," the statement said. "The reentry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers."

The removal comes amid a thaw in Sino-Australian relations.

However, trade tensions between China and the US, simmering over years of tariffs and restrictions, have recently escalated with China filing a complaint with the WTO against the US for impeding electric vehicle manufacturers from procuring battery materials from China.

The US implemented the Inflation Reduction Act and its specific regulations, which require the use of specific regional products, including those from the US, as a precondition for subsidies, under the guise of addressing climate change and fostering a low-carbon environment, the spokesman said.

These actions violate relevant WTO rules, distort fair competition and severely disrupt global new energy vehicle industrial and supply chains. China's decision to file a complaint with the WTO is not only a legitimate measure to safeguard the interests of Chinese NEV enterprises and promote a fair competitive environment in the global NEV industry, but also a firm stance in upholding a rule-based multilateral trading system and staunchly defending the stability of global NEV industrial and supply chains, He said.

The act, a prominent policy of US President Joe Biden's administration, provides tax breaks for the purchase of electric vehicles manufactured in North America.

Beginning in 2024, vehicles having battery components or raw materials produced or assembled by "foreign entities of concern "will not be eligible for consumer EV tax credits, according to the Biden administration. The requirements apply to firms domiciled in China, including subsidiaries of US companies, as well as those elsewhere that are at least 25 percent held by State-backed entities from China.